Online casino operator reveals pre-tax losses rose to over $25 million following sale of sportsbetting operation to Stan James.
Tuesday 18th March 2008
London-listed online casino operator 32Red has revealed increased losses for 2007 reflecting the poor performance of its BetDirect sportsbetting business.
32Red sold BetDirect to bookmaker Stan James last year for $11.52 million after only purchasing it a little over a year before for $25.05 million. The firm announced total operating losses of $13.42 million and a loss on disposal of $14.61 million. Reflecting the overall costs associated with the venture, pre-tax losses rose to $25.81 million from 2006’s $7.41 million.
“Following the sale of BetDirect in October of 2007, the group returns immediately to a cash generative position,” said Ed Ware, Chief Executive Officer for 32Red.
“Management focus is now 100 percent on the core successful 32Red brand. The launch of new products and new language services herald the start of 32Red’s next phase of growth.”
The firm stated that the annual loss was ‘a direct result of the poor performance of the BetDirect business and the subsequent write-down of tangible and intangible fixed assets to their realisable value following the sale’ but that things were now looking up as 2008 trading has been ‘encouraging’.
“We have seen a very encouraging start to 2008 with excellent growth at the 32Red.com casino,” said Ware.
“We have surpassed several important milestones in the first few weeks of 2008 and look forward with confidence to an exciting year.”
London-listed online casino operator 32Red has revealed increased losses for 2007 reflecting the poor performance of its BetDirect sportsbetting business.